Publication: Monitoring Fiscal Risks of Subnational Governments
Date
2002-03
ISSN
Published
2002-03
Author(s)
Abstract
Growing experience with decentralization
indicates that a country's public finance system
suffers when subnational governments expose themselves to
excessive risk. But central governments often lack the
information needed to monitor the fiscal risks of
subnational governments. Several countries, having
experienced subnational fiscal crises, have established
systems to monitor such risks. These systems assess
subnational fiscal health and call for central government
attention-and possible intervention-if preset indicators of
fiscal imprudence are exceeded. In developing countries such
systems also provide useful information for subnational
credit ratings. This note describes several country
experiences with indicators of subnational fiscal risks,
identifies some limitations of such indicators, and suggests
alternative indicators.
Citation
“Ma, Jun; Polackova, Hana. 2002. Monitoring Fiscal Risks of Subnational Governments. PREM Notes; No. 64. © World Bank, Washington, DC. http://openknowledge.worldbank.org/handle/10986/11355 License: CC BY 3.0 IGO.”